What is a contingency plan Why is it important Please connec

What is a contingency plan? Why is it important? Please connect the dots between contingency planning and organizational structure.

Solution

A plan which is kept as an alternative to the original plan inorder to avoid dangerous consequences is called a contingency plan. This plan helps in gettingout of problems taht occur in original plan . This is very important to escape from problems.When a problem occurs, we can be prepared and escape when we have a contingency plan in hand. In business contingency plans help in protecting the business from unexpected problems like natural disasters or economical problems. Thes eplans guide us to come out of them. Hence contingency plans are very important.

While designing the stucture of an organisation , we need to foresee the problems that migh toccur in future. We need to be prepared to face these problems and come out of them. This is where contingency planning is needed. It helps in securing the structure of the organisation even in tough times and is very important for any organisation.